National Processing Reports Record First Quarter 2001 Net Income, Up 21% from Prior Year

LOUISVILLE, Ky., April 19 /PRNewswire/ -- National Processing, Inc.
(NYSE: NAP), today reported record financial results for the first quarter of
2001. Net income for the quarter was $11.5 million, or $0.22 per share. This
represents a 21% increase over net income of $9.5 million for the first
quarter of 2000. Revenue was up 11% to $109.0 million compared to
$97.9 million for the first quarter of 2000. The increase in financial
results was driven by the Company's Merchant Card Services segment, which
posted a 20% increase in revenue and 28% increase in both processing volumes
and earnings before interest and taxes.
Summary Financial Information
(dollars in millions, except per share amounts)
Quarter Ended March 31,
Change
2001 2000 Versus Prior Year
Consolidated
Revenue $109.0 $97.9 11%
Earnings Before Interest and
Taxes (EBIT) $16.4 $13.6 21%
EBIT Margin 15.07% 13.93% 114bps
Net Income $11.5 $9.5 21%
Net Income per Share $0.223 $0.188 19%
Merchant Card Services
Revenue $85.3 $70.9 20%
Earnings Before Interest and
Taxes (EBIT) $13.6 $10.7 28%
EBIT Margin 15.94% 15.03% 91bps
Certain amounts may not compute due to rounding.
Summary Financial Highlights
* Net income increased to record levels - $11.5 million for the first
quarter, representing a 21% increase over the first quarter of 2000.
* Revenue for the first quarter of 2001 rose to $109.0 million,
representing an 11% increase over the first quarter of 2000.
* EBIT increased to $16.4 million for the first quarter 2001, representing
a 21% increase over the comparable 2000 quarter.
* Revenue for the Merchant Card Services business line was $85.3 for the
first quarter, representing an increase of 20% over the comparable
period for 2000. Merchant Card Services revenue represented 78% of
total Company revenue for the first quarter 2001.
* Merchant Card Services EBIT increased to $13.6 million for the first
quarter 2001, representing a 28% increase over the comparable 2000
quarter.
* For the ninth consecutive quarter, Merchant Card Services EBIT exceeded
prior year quarterly amounts by over 27%.
* The Company's balance sheet remained free of long-term debt. As of
March 31, 2001, the Company had approximately $127 million of cash and
Eurodollar deposits, which places the Company in a strong position to
execute its strategic initiatives.
"I am pleased to report another outstanding quarter for National
Processing," stated Thomas A. Wimsett, President & CEO. "These results
reflect the strong competitive spirit and the results oriented mind-set of our
employees."
"Our merchant processing business, which represented 78% of our total
revenues in the first quarter, continues to capture market share at a very
impressive rate. Merchant processing volumes grew at 28%, more than double
the industry growth rate. Our relentless pursuit of performance and growth
has allowed us to achieve yet another quarter of solid financial performance
and nationwide sales momentum."
A conference call to discuss financial performance and business highlights
will be held at 9:00 a.m. EDT today by Thomas A. Wimsett, president and chief
executive officer, and David E. Fountain, chief financial officer. The call
will be open to the public with both media and individual investors invited to
participate in a listen-only mode. The conference can be accessed by calling
888.423.3281. Participants should plan to dial in approximately 15 minutes
prior to the start of the call.
A replay of the live call will be available starting 1:00 p.m. EDT,
April 19, 2001 through Midnight EDT on April 24, 2001. The replay may be
accessed by dialing 800.475.6701 and entering access code 577720.
This announcement and Mr. Wimsett's comments contain forward-looking
statements that involve significant risks and uncertainties, including changes
in general economic and financial market conditions and the Company's ability
to execute its business plans. Although management believes the expectations
reflected in such forward-looking statements are reasonable, actual results
may differ materially. Additional information concerning factors that could
cause actual results to differ materially from those contained in forward-
looking statements is available in our Annual Report on Form 10-K for the year
ended December 31, 2000, as filed with the Securities and Exchange Commission.
About National Processing, Inc.
National Processing, Inc. through its wholly owned operating subsidiary,
National Processing Company (NPC(R)), is a leading provider of merchant credit
card processing. National Processing is 87 percent owned by National City
Corporation (NYSE: NCC) ( www.nationalcity.com ), a Cleveland based
$89 billion financial holding company, supporting over 500,000 merchant
locations, representing nearly one out of every five Visa(R) and MasterCard(R)
transactions processed nationally. NPC's card processing solutions offer
superior levels of service and performance and assist merchants in lowering
their total cost of card acceptance through our world-class people, technology
and service. Additional information can be obtained at www.npc.net .
National Processing, Inc.
Financial Summary
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended March 31, % Change
from Prior
2001 2000 Year
Revenue $109,045 $97,867 11
Operating expenses 80,758 71,109 14
General and administrative expenses 5,575 7,752 (28)
Depreciation and amortization 6,280 5,375 17
Earnings before interest and taxes 16,432 13,631 21
Net interest income 2,220 1,815 22
Income before income taxes 18,652 15,446 21
Provision for income taxes 7,113 5,898 21
Net income $11,539 $9,548 21
Net income per share-diluted $0.223 $0.188 19
Shares used in computation 51,651 50,844 2
Certain items have been reclassified in the Financial Summary for prior
periods to conform with the 2001 presentation and had no effect on
previously reported net income.
Certain amounts may not recompute due to rounding.

SOURCE National Processing, Inc.

LOUISVILLE, Ky., April 19 /PRNewswire/ -- National Processing, Inc.
(NYSE: NAP), today reported record financial results for the first quarter of
2001. Net income for the quarter was $11.5 million, or $0.22 per share. This
represents a 21% increase over net income of $9.5 million for the first
quarter of 2000. Revenue was up 11% to $109.0 million compared to
$97.9 million for the first quarter of 2000. The increase in financial
results was driven by the Company's Merchant Card Services segment, which
posted a 20% increase in revenue and 28% increase in both processing volumes
and earnings before interest and taxes.
Summary Financial Information
(dollars in millions, except per share amounts)
Quarter Ended March 31,
Change
2001 2000 Versus Prior Year
Consolidated
Revenue $109.0 $97.9 11%
Earnings Before Interest and
Taxes (EBIT) $16.4 $13.6 21%
EBIT Margin 15.07% 13.93% 114bps
Net Income $11.5 $9.5 21%
Net Income per Share $0.223 $0.188 19%
Merchant Card Services
Revenue $85.3 $70.9 20%
Earnings Before Interest and
Taxes (EBIT) $13.6 $10.7 28%
EBIT Margin 15.94% 15.03% 91bps
Certain amounts may not compute due to rounding.
Summary Financial Highlights
* Net income increased to record levels - $11.5 million for the first
quarter, representing a 21% increase over the first quarter of 2000.
* Revenue for the first quarter of 2001 rose to $109.0 million,
representing an 11% increase over the first quarter of 2000.
* EBIT increased to $16.4 million for the first quarter 2001, representing
a 21% increase over the comparable 2000 quarter.
* Revenue for the Merchant Card Services business line was $85.3 for the
first quarter, representing an increase of 20% over the comparable
period for 2000. Merchant Card Services revenue represented 78% of
total Company revenue for the first quarter 2001.
* Merchant Card Services EBIT increased to $13.6 million for the first
quarter 2001, representing a 28% increase over the comparable 2000
quarter.
* For the ninth consecutive quarter, Merchant Card Services EBIT exceeded
prior year quarterly amounts by over 27%.
* The Company's balance sheet remained free of long-term debt. As of
March 31, 2001, the Company had approximately $127 million of cash and
Eurodollar deposits, which places the Company in a strong position to
execute its strategic initiatives.
"I am pleased to report another outstanding quarter for National
Processing," stated Thomas A. Wimsett, President & CEO. "These results
reflect the strong competitive spirit and the results oriented mind-set of our
employees."
"Our merchant processing business, which represented 78% of our total
revenues in the first quarter, continues to capture market share at a very
impressive rate. Merchant processing volumes grew at 28%, more than double
the industry growth rate. Our relentless pursuit of performance and growth
has allowed us to achieve yet another quarter of solid financial performance
and nationwide sales momentum."
A conference call to discuss financial performance and business highlights
will be held at 9:00 a.m. EDT today by Thomas A. Wimsett, president and chief
executive officer, and David E. Fountain, chief financial officer. The call
will be open to the public with both media and individual investors invited to
participate in a listen-only mode. The conference can be accessed by calling
888.423.3281. Participants should plan to dial in approximately 15 minutes
prior to the start of the call.
A replay of the live call will be available starting 1:00 p.m. EDT,
April 19, 2001 through Midnight EDT on April 24, 2001. The replay may be
accessed by dialing 800.475.6701 and entering access code 577720.
This announcement and Mr. Wimsett's comments contain forward-looking
statements that involve significant risks and uncertainties, including changes
in general economic and financial market conditions and the Company's ability
to execute its business plans. Although management believes the expectations
reflected in such forward-looking statements are reasonable, actual results
may differ materially. Additional information concerning factors that could
cause actual results to differ materially from those contained in forward-
looking statements is available in our Annual Report on Form 10-K for the year
ended December 31, 2000, as filed with the Securities and Exchange Commission.
About National Processing, Inc.
National Processing, Inc. through its wholly owned operating subsidiary,
National Processing Company (NPC(R)), is a leading provider of merchant credit
card processing. National Processing is 87 percent owned by National City
Corporation (NYSE: NCC) ( www.nationalcity.com ), a Cleveland based
$89 billion financial holding company, supporting over 500,000 merchant
locations, representing nearly one out of every five Visa(R) and MasterCard(R)
transactions processed nationally. NPC's card processing solutions offer
superior levels of service and performance and assist merchants in lowering
their total cost of card acceptance through our world-class people, technology
and service. Additional information can be obtained at www.npc.net .
National Processing, Inc.
Financial Summary
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended March 31, % Change
from Prior
2001 2000 Year
Revenue $109,045 $97,867 11
Operating expenses 80,758 71,109 14
General and administrative expenses 5,575 7,752 (28)
Depreciation and amortization 6,280 5,375 17
Earnings before interest and taxes 16,432 13,631 21
Net interest income 2,220 1,815 22
Income before income taxes 18,652 15,446 21
Provision for income taxes 7,113 5,898 21
Net income $11,539 $9,548 21
Net income per share-diluted $0.223 $0.188 19
Shares used in computation 51,651 50,844 2
Certain items have been reclassified in the Financial Summary for prior
periods to conform with the 2001 presentation and had no effect on
previously reported net income.
Certain amounts may not recompute due to rounding.
SOURCE National Processing, Inc.